Two Proposals in the Pipeline: Stricter HDB Resale Rules and BTO Waiting Times Cut
Two recent announcements have indicated the government’s intentions to alter the way people are able to sell prime HDB properties, while it is good news for young couples trying to get onto the property ladder.
Changes to HDB Reselling Conditions
While there are plans to build HDB’s in what are considered to be prime locations in the coming years, there is the caveat that the government do not want a repeat of the situation that arose with The [email protected] The iconic Cantonment Road properties, launched in 2004 are highly sought after and have been resold for prices many times over and above the original purchase price.
Property consultancy OrangeTee have gone on record stating that of the 174 units that have been resold, 18 have gone for more than $1million. The original sales price was between $289,200 and $439,400, which means many owners reaped rewards in the region of $500,000. This has caused some discussion, as the properties – particularly those in such areas – are heavily subsidised, and the process of getting one in the first place is pot luck.
While there is no wish for a repeat occurence with new developments, the government is keen to still have HDB’s built in all areas of the island, in an attempt to avoid what it termed “social and physical stratification”. To satisfy both of these criteria, it will put in place several measures. These will more than likely include increasing the minimum occupation period (MOP) from 5 years, decreasing the lease from the current 99 years or increasing the resale levy.
Built to Order Waiting Times to be Cut
The wait for newlyweds to move into their first home will be reduced if government initiatives prove successful. Mr Wong, the National Development Minister announced it was the intention to bring down the number of years young people have to wait before getting the keys to their new home from the current three to four years, to two to three.
He outlined the ways this would be achieved, while ensuring that they wouldn’t destabilise the property market by completing too many properties, many of which would then become redundant. The plan is to shorten waiting times by bringing forward building work, and starting ahead of BTO (built to order) launches. This will be done only on selected BTO flats, resulting in a range of units all with different waiting times, giving prospective couples a good choice both in terms of property and waiting times. Mr Wong’s department are still ironing out the finer details of the plan, but are hopeful the measures can be put in place in the very near future. The minister also stressed that he did not expect prices to be higher for those properties with a new shortened waiting time, but that location would be the major factor in determining price points.
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Upcoming New Launch Condo in 2017